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Tuesday, November 10, 2026Nov 10

A bet on growth puts small-cap funds ahead in first quarter

By TIM PARADIS

AP Business Writer

NEW YORK – Investors are betting that small-caps will be the stock market’s standouts as the economy improves.

Some of the strongest mutual fund returns in the January-March quarter have come from funds that focus on smaller companies.

Small-capitalization value funds returned an average 9.3 percent and small-cap growth funds returned 7.2 percent during the quarter. The numbers topped the 3.7 percent return for large-cap growth funds and the 5.3 percent return for large-cap value funds. The figures reflect trading through Thursday so they don’t include the final four trading days of the quarter.